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Old 10-21-2014, 12:30 PM   #1
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What age / mileage to trade truck for new?

I am very happy with my 2011 F150 Ecoboost, right now. But at what age or milage does the value starts to plummet? I am thinking about this because a buddy of mine just had his 2001 F250 with a 7.3 totaled and he is getting $11,000 from the insurance. A replacement truck will cost him out of pocket about $50,000 when all is said and done.

I am wondering if it makes sense to trade the truck in earlier so you don't have such a big cost when the time comes. Yeah, I know he used the truck for 13 years and all but he is faced with a very big and unexpected expense now. If his truck was say only 4 years old, he would not have to lay out / finance so much at one time.

So my question is, at what point does it make the most sense to trade? Is there a point where the trade in value has peaked at a certain milage or age? Or do you run them until the wheels fall off and then worry about it?

Curious to see what others think about this.
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Old 10-21-2014, 12:50 PM   #2
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I run 'em till the wheels fall off. That's the only way I can justify the cost of buying new. The truck starts depreciating as soon as you drive it off the lot. $11k for a 13 year old truck is quite generous. The only reason he got that much is that the old 7.3 Powerstrokes are a sought after truck. Just my opinion.
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Old 10-21-2014, 12:51 PM   #3
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The larges amount of depreciation is the first year, so it may look like a large amount but most of it is during the first 4 years or so. I picked up my less than 1 year old ram for 28000, it sticker-ed for around 42000 with discounts.
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Old 10-21-2014, 12:53 PM   #4
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Theoretically, you should continue making a payment to a savings account once the current vehicle is paid off. That way you have a chunk of money for purchasing the next and it not being an "unexpected expense".

Doesn't answer your question and is easier said than done.
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Old 10-21-2014, 01:17 PM   #5
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It's timing and a combination of age and mileage. Go to a dealer/salesman you like and trust to gain knowledge. Example: your vehicle is 4 years old; on January 1 it is now 5 years old the book value may drop $5000 or you have 49,000 miles and at 50,000 the book value may drop $5000. The trade value to a dealer (on a new vehicle) is also based on loan value and availability of loans to resell your trade.

Also, when the manufacture changes body styles and options; this can either decrease or increase the value of your trade, depending on the demand for your trade; and the current economy in your area can also become a factor.

What I did was trade my wife's 2012 Escape with less than 30,000 miles for 2014 Explorer in December of 2013 because the 2012 Escape was going to devalue "a lot" in January of 2014. I did the same when I purchased a new 2013 F150 and traded my older F150. I maintain contact with the same dealership for years, they keep me informed on rebates and trade values and give me options. Ultimately, I make the choice; an informed decision.

The best vehicle is the one that is paid for, but you are right in the thought of maintaining the value if and when you need to purchase another one and get value from your trade or damage vehicle. The same can be said for your RV.
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Old 10-21-2014, 01:43 PM   #6
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Your biggest depreciation drop will be year one. I have purchased many new vehicles and I am always happiest with my trade value around year 4 or 5 . This is not scientific, it is just my comfort zone. That timing usually coincides with the expiration of any warranty and the end of my loan term.
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Old 10-21-2014, 04:59 PM   #7
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I am of the mind, paid off is best value...once paid for...no need to trade, always nice to have an extra truck around, especially one that can be used for the odd job......

personally my buy, sell and trade is based on want and not need.....

The general rule of thumb in my opinion is: take care of and do service on vehicle, when ready to trade or sell, a good local private price, dealer price and book value average...works for trade or sale.....if you get that out of vehicle out after several years, no need to complain...

from my own experiences, I am also of the mind, a person should try and keep enough money on side for emergencies, such as trans, engine, down payments...

like the individual said earlier, if you been making a payment, keep making it to a savings account for a while, trust me you will be glad you did...
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Old 10-21-2014, 09:33 PM   #8
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I guess I am just a tightwad. When we bought the new 5ver the GVWR of my 2003 F250 7.3 was to low "Legally" so I sold it and bought a 2003 Silverado Dually Diesel. The F250 had 205k and the Silverado has 154k price difference $3000. I will keep this vehicle until it blows up or I need something bigger.
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Old 10-21-2014, 09:36 PM   #9
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you'll never save money by buying more vehicles. You save money by driving paid off ones. Your buddy wouldn't have gotten half that if it was a gas truck.
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Old 10-21-2014, 09:56 PM   #10
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X2 on putting your payment in the bank. Then, the longer you have the truck, the less you'll get for it when it dies/crashes, BUT the more you'll have in the bank. So no matter when it's time for the new truck, 3 yrs or 13 yrs, the amount you'll need to add to your savings to purchase the new truck will be about the same.
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